AirSculpt Technologies, Inc.

Good morning and welcome to Airscalp Technologies first quarter 2022 earnings conference call. Currently all participants are in a listen only mode. As a reminder, today's call is being recorded and we have allocated one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Dennis Dean, Chief Financial Officer at Airscalp Technologies. Thank you. You may begin.

Good morning, everyone, and thanks for joining us to discuss AirSculpt Technologies' results for the first quarter. Joining me on the call today is our founder and chief executive officer, Dr. Aaron Rollins, and our chief operating officer, Ron Zelhoff. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities, and our growth. Risk and uncertainties that may impact these statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we will file with the SEC, all of which can be found on our website at investors.elitebodysculpture.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, We will also reference certain non-GAAP financial measures. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. A reconciliation of these measures can be found in our earnings release as filed this morning and in our most recently quarterly report when filed, which will also be available on our website. With that, I'll turn the call over to Dr. Aaron Rollins.

Thank you, Dennis. Good morning, and thank you all for joining us today. First, I want to say the first quarter saw us reach the highest quarterly volume in revenue that we have ever achieved in the history of our company. For the quarter, we generated $39.5 million of revenue, reflecting outstanding growth of 51% over the prior year quarter. Additionally, going into the second quarter, the demand we are seeing is higher than we have ever experienced. We developed AirSculpt 10 years ago with one center in Beverly Hills. We now have a national network of 19 centers across 15 states, and we continued executing on our growth plans and opened a new location in Las Vegas during the quarter. We remain on target to execute on our de novo strategy of opening four centers this year, which speaks to the demand for our services domestically. As we mentioned on our previous call, We also believe there is a great opportunity to also expand our network of centers internationally, and we anticipate opening a center in Toronto, Canada in the second half of this year. We look forward to continuing the momentum for the rest of 2022 and beyond, and we are excited about the opportunities ahead of us as we continue to expand into new markets and deliver incredible results for our patients and our investors. There is tremendous wind in our sails from favorable trends in the aesthetic space especially in fat reduction and body contouring. A recent publication by the Aesthetic Society showed that liposuction surgical procedures increased to approximately 500,000 procedures in 2021 and is now the top aesthetic plastic surgical procedure performed today, surpassing breast augmentation. These statistics are further evidence of the opportunity for us to increase our market share due to our superior results and technologies. We remain committed to driving Aeroscope's brand awareness. We believe most people who want body contouring services and fat removal don't know that we exist. We are focusing our plans to reach this group of customers by expanding our usage of celebrity influencers, earned, owned, and paid media content, as well as continued development of our social and digital media outreach. We believe these efforts to increase our brand awareness, along with the heavy demand for aesthetic services, will create exceptional value for our business. We have also been very active in building on our team. Due to our rapid pace of growth, we have taken a proactive approach of making investments in various areas of the company to position us for further growth. Over the past six months, we have developed a dedicated physician recruiting department, and these efforts are performing exceptionally well. During the quarter, we added seven new surgeons to our network, which brings the number of physicians performing cases at our facilities to over 50. As a result of our increased recruiting efforts, we recently hired our second surgeon trainer, which will allow us to train newly recruited surgeons more effectively as we strive to meet customer demand. During the quarter, we also expanded our clinical capabilities by adding a chief clinical officer to not only support our clinical operations, but also to lead our upcoming health research project. As we introduced on our previous call, we are excited to undertake a health research study on the effects our procedures have on a patient's metabolic parameters. We are well into the process of designing the study, and we are on target to submit to the Institutional Review Board for approval later in the second quarter. We expect patient enrollment to begin this fall, and we anticipate having results from the study in 2023. Additionally, we have contracted with a national adult stem cell banking company, which will allow us to offer our patients the opportunity to bank their stem cells harvested from the fat removed during their AirSculpt procedures. We believe this is one additional way for us to further promote the health and wellness of our patients, and we plan to start offering this in the second quarter. I'm sure you all have questions on how the current inflationary environment and increasing interest rates will impact our business. While we can't predict the future, our current demand is stronger than we've ever seen in our history. We also have a very resilient business model, which has a low fixed cost structure coupled with a strong balance sheet to support our business. Now I want to turn the call over to Ron Zellhoff, our Chief Operating Officer. Ron?